Tag Archive for: rural housing programs

Tracking Implementation of Rural Provisions in the 21st Century ROAD to Housing Act

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This page was last updated on September 18, 2026.

The 21st Century ROAD to Housing Act, enacted in July 2026, includes a wide variety of provisions. Many of the law’s provisions require further action by federal agencies and/or Congress before they will impact the U.S. housing supply. Some require agencies to develop regulations or conduct studies. Others will not be effective unless Congress adds funds in future appropriations bills.

The Housing Assistance Council (HAC) is tracking actions taken to implement the law’s provisions that seem most relevant to affordable housing in rural areas. This tracker does not include every provision in the law.

If you are aware of implementation actions that are not on this list but should be, please let HAC know.

Table of Contents

Rural Rental Housing Preservation
Other Rural Housing Provisions
Environmental Review
Finance and Banking
Native American Housing
Persistent Poverty Areas
Manufactured Housing
HOME
CDBG
Small-Dollar Loans
Other HUD
Research and Reports Related to Rural Housing
Resources for More Information

PROVISION

ACTION NEEDED

STATUS

Rural Rental Housing Preservation
Decoupling: At the time the law was enacted, Section 521 Rental Assistance could be provided only if a property had an active Section 515 or 514 loan. ROAD changes this by “decoupling” the Rental Assistance from the USDA loan in certain circumstances. The loan must be within four years of expiration. USDA must determine that the loan cannot be restructured, or the property owner must decline to restructure it. The property must have Rental Assistance already. If all these conditions are met, USDA can renew the existing RA contract for 20 years, subject to annual appropriations. USDA can also extend the RA to cover unassisted units at a property where existing RA is being decoupled. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for Section 521 Rental Assistance.		 Decoupled Rental Assistance is operating and funded through December 11, 2026, as it has been since FY24 based on authority provided in USDA’s annual appropriations. USDA has named this pilot program Stand-Alone Rental Assistance (SARA). The pilot’s terms are explained in a USDA notice.
Preservation and Revitalization Program: The Multifamily Preservation and Revitalization Program (MPR) is permanently authorized, with a number and a revised name: the Section 545 Housing Preservation and Revitalization Program. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for the program.		 MPR is funded through December 11, 2026 and is operating based on funding notices such as this from 2024.
Preservation Technical Assistance: USDA may make grants to nonprofits, coops, and public housing agencies to provide technical assistance for preservation. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for the program.		 With funds appropriated for this purpose by Congress, USDA has a pilot TA program, which is operating and funded through the continuing resolution that extends FY26 funding levels through December 11, 2026. Learn about the TA HAC provides through this program. 
Notices to Owners and Tenants: USDA is required to send written notices every year to owners whose mortgages will mature within four years, and tenants who live in properties with mortgages that will mature within two years. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.
Two-Step Transfers: When a nonprofit or limited partnership purchases a Section 515 property to preserve it, the ownership transfer may occur before rehabilitation. (ROAD Section 502(n)) USDA has a “Simple Transfer” pilot in effect until December 31, 2027.
Foreclosures: When a USDA multifamily mortgage is foreclosed, USDA Rental Assistance continues and can be used at other USDA-financed properties. The law also extends existing federal foreclosure processes to include properties with Section 538 guaranteed loans. (ROAD Section 502(a))
Vouchers: By July 11, 2028, USDA must issue regulations establishing a process for adjusting the amounts of rural housing vouchers annually and when tenants’ incomes change. (ROAD Section 502(k)) ROAD requires USDA to issue regulations by July 11, 2028.

Other Rural Housing Provisions
Staffing and Technology: If Congress appropriates funds for these purposes, USDA may increase its staff and upgrade its information technology systems for the rural housing programs. (ROAD Section 502 (c)) Congress would need to appropriate funds.
Section 502 Direct: Effective immediately, USDA has the authority to extend a Section 502 direct loan for a term up to 40 years after the date of loan refinancing or modification. (ROAD Section 502(o)) USDA RD should issue guidance (a handbook change, Unnumbered Letter, or Administrative Notice) or a regulatory change.
Section 502 Guaranteed: Licensed or regulated child care providers can run their businesses in homes with Section 502 guaranteed loans. Properties that include Accessory Dwelling Units are eligible for Section 502 guaranteed loans. (ROAD Sections 502(q) and (r)) USDA issued proposed regulations on March 31, 2026 that would make these changes. Comments were due June 1. A final regulation has not yet been promulgated.
Section 502 Guaranteed: When a buyer takes over the seller’s Section 502 guaranteed mortgage, the seller is no longer liable for the mortgage. USDA may charge a processing fee. (ROAD Section 502(p))
Section 504: Home repair loans and grants under Section 504 have been available for very low-income homeowners only. ROAD extends the eligibility for loans (but not grants) to include homeowners with low incomes. Also, for years, the law has required USDA to place a mortgage on any property receiving a Section 504 loan over $7,500. ROAD raises that minimum to $15,000. (ROAD Section 502(g)) COMPLETED. USDA made these changes in its single-family handbook on August 28, 2026.
Rural Community Development Initiative: The law authorizes the RCDI capacity building program with a $500,000 cap on grants. (ROAD Section 502(h)) USDA RD must develop regulations for the program. (RCDI has existed for years as a pilot program without regulations.) Congress will need to continue appropriating funds for it. USDA issued a NOFO for FY25 RCDI funds in July 2025 but rescinded it in July 2026, announcing that it would be revised and new applications would be required. The program also received an appropriation for FY26.

Environmental Review
Exemption from Review: USDA-financed construction or modification on an infill site is exempt from environmental review. An “infill site” is defined as a site served by existing infrastructure including water lines, sewer lines, and roads. (ROAD Section 103) By July 11, 2031, USDA must submit a report to Congress on the impact of this exemption.
HUD-USDA coordination: The law requires HUD and USDA to coordinate their environmental review processes for projects that receive funds from both departments. (ROAD Section 802) By early January 2027, HUD and USDA must develop a memorandum of understanding establishing coordination. By July 11, 2027, they must report to Congress on ways to improve the review process for jointly funded projects.
State and local actions: The law allows state, local, and Tribal governments to streamline environmental reviews. (ROAD Section 205)

Finance and Banking
Public welfare investment: The amount banks are permitted to use for public welfare investment, known generally as the PWI cap, is increased in Section 203 of the law. The provision applies to national banks (regulated by the Comptroller of the Currency) and to state banks that are regulated by the Federal Reserve. Previously they were permitted to invest up to 15% of their capital and surplus in public welfare activities, which can include Low-Income Housing Tax Credits, support for small businesses, and the like. ROAD to Housing raises the cap to 20%. (ROAD Section 203) By July 11, 2028, and then every two years, OCC and the Federal Reserve must submit reports to Congress about public welfare investments.
Rural lenders studies: The law requires two studies examining rural lenders. The federal bank regulators (the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve) must produce a joint study regarding the institutions they oversee, and the National Credit Union Administration must conduct a similar one for credit unions. Both studies will identify ways to “improve the growth, capital adequacy, and profitability” of institutions that primarily serve rural areas, then identify federal statutes or regulations that limit those lenders’ work or the establishment of new rural institutions. (ROAD Section 909) Both studies are due to Congress by July 11, 2027.

Native American Housing
Tribes and Tribally Designated Housing Entities are specifically eligible for some of the new and revised programs under the law, but it does not otherwise address Native housing programs.

Persistent Poverty Areas
The law specifically mentions persistent poverty areas only once, providing that USDA may (but is not required to) exempt projects in persistent poverty regions from the requirement for Rural Community Development Initiative grantees to provide matching funds. (ROAD Section 502(h)) USDA could include exemption language in its RCDI regulations.

Manufactured Housing
Chassis: The law removes the permanent chassis requirement for manufactured housing. (ROAD Section 301(a) and (b)) HUD, in consultation with the Manufactured Housing Consensus Committee, must develop standards for homes without a permanent chassis. HUD recently proposed to eliminate the permanent chassis requirement for upper floors of manufactured homes, so that change could be put into place soon.
Energy efficiency: Energy efficiency standards for manufactured housing must be adopted by HUD (i.e., standards cannot be imposed by other agencies unless HUD agrees). (ROAD Section 301(d)) HUD must adopt minimum energy efficiency standards by July 11, 2027 and then update them every three years. On September 18, 2026, the Department of Energy published a notice saying that since HUD has not adopted standards, this ROAD provision means DOE’s 2022 energy standards for manufactured housing  have no effect. Therefore it will not enforce its standards.
FHA insurance: HUD must study barriers to FHA-insured lending for modular housing and recommend changes. FHA financing for modular homes is authorized. HUD must study the cost effectiveness of offsite construction. (ROAD Sections 302 and 303) The reports on the barriers study and the offsite construction study must be published by July 11, 2027. By early November, 2027, HUD must begin developing regulations for construction financing loans on modular homes.
PRICE: The law authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program for seven years to provide grants to entities to maintain, protect, and stabilize manufactured housing and manufactured housing communities. (ROAD Section 304) Congress will need to appropriate funds for PRICE. HUD will need to develop regulations. PRICE was initially created and funded in the FY23 omnibus appropriations bill and received a small additional appropriation in FY24, but has not been funded since then.

HOME
Authorization: The law permanently reauthorizes HOME. (ROAD Section 501)
Home values: HOME funds can be used for purchase or rehab of homes valued at up to 110% of the average purchase price for the area, instead of 95%. (ROAD Section 501) HUD will need to revise its regulations.
Income limits: Households earning up to 100% of area median income are eligible for HOME homeownership assistance. HOME rental housing is still limited to households earning no more than 80% of AMI. (ROAD Section 501) HUD must revise its regulations by July 11, 2027.
Environmental review: The law categorically excludes some HOME activities from environmental review: new construction infill housing, acquisition of real property for affordable housing purposes, rehabilitation projects, and new construction of projects with 15 or fewer units. Developments receiving funding from two separate entities must have only one environmental review. (ROAD Section 501(l)) HUD must revise its regulations by July 11, 2027.
Build America, Buy America: HUD must review and update its implementation of the Build America, Buy America Act for HOME-funded projects. (ROAD Section 501(m)) (The law has no other provisions regarding BABA.) By early January, 2027, HUD must review its implementation of BABA for HOME-funded projects. By early April, 2027, HUD must update its guidance on applying BABA to HOME projects and must report to Congress.

Section 3: When assisting 50 or fewer homes, state recipients of HOME funds and participating jurisdictions receiving less than $3 million in HOME funds are exempt from the Section 3 requirements to provide jobs and economic opportunities to low-income residents. (ROAD Section 501(n))

CHDO definition: The law makes it easier for local nonprofits to qualify as Community Housing Development Organizations by requiring “accountability” to low-income community residents rather than “significant accountability.” (ROAD Section 501(b))

Infrastructure: HOME funds can be used for infrastructure improvements related to a property assisted by either HOME or LIHTC in a place that is not a CDBG entitlement area. (ROAD Section 501(d)) HUD must revise its regulations by July 11, 2027.
Tenant selection: Properties with four or fewer rental units are exempted from some tenant selection requirements, such as use of a wait list. (ROAD Section 501(q))
Allocation amounts: A local government must receive a formula allocation of $750,000 rather than the previous $500,000 to be designated a participating jurisdiction. (ROAD Section 501(u))
Revitalizing Empty Structures Into Desirable Environments (RESIDE): The law creates a new pilot program within HOME, making competitive grants to participating jurisdictions to convert vacant and abandoned buildings to affordable housing. (ROAD Section 210) Congress would need to appropriate funds to implement this program. HUD is unlikely to promulgate regulations for a pilot program, but its Notice of Funding Opportunity would need to provide enough information to guide grantees.

CDBG
New construction: The law makes new construction of affordable housing an eligible activity for CDBG funds appropriated for FY27 and later years. A grantee can use up to 20% of its annual CDBG allocation for this purpose. (ROAD Section 204(a))
Community Development Block Grant-Disaster Recovery: The law authorizes the CDBG-DR program for three years. States, Tribes, and local governments are eligible for grants. (ROAD Section 504(d)) Within 30 days after the law’s enactment, HUD must publish a Federal Register notice explaining allocation methodologies and requesting comments. By January 11, 2027, HUD must issue proposed regulations for the program, with a 90-day comment period. Final regulations must be issued by July 1, 2027. Congress will need to appropriate funds for the program. The Federal Register notice was published August 13, 2026, requesting comments by September 14, 2026 on CDBG-DR allocations. Some of HUD’s questions specifically address the rural and Tribal impact of formula methodologies. The notice also asks how to define  “catastrophic disasters,” the term used in the law.
HUD/USDA/VA collaboration: The law requires HUD, USDA, and VA to identify opportunities for collaboration to streamline the implementation of their housing programs. (ROAD Section 801) The departments must provide a report to Congress by early January 2027, publish it in the Federal Register, and accept comments for 30 days.
Publicly owned land: Recipients of CDBG funds are required to maintain public databases of land they own, effective on October 1, 2026. (ROAD Section 104)

Small-Dollar Loans
Small-dollar mortgage pilot: HUD/FHA may (but is not required to) create a pilot program to increase access to small-dollar mortgages, $100,000 or less, secured by properties with 1-4 units that are their owners’ principal residences. (ROAD Section 105) The pilot may be created by July 11, 2027, and will terminate four years after it is created.
Small-dollar loan research: The law requires CFPB to study small-dollar loans originated by FHA, VA, and USDA or eligible for purchase by Fannie Mae or Freddie Mac and barriers to this type of lending. (ROAD Sections 401 and 402) Two studies are due in early April 2027.

Other HUD
Whole-Home Repairs: The law authorizes a pilot program at HUD to address home repair needs and health hazards holistically to improve accessibility, habitability and safety, or energy efficiency. Both rental and owner-occupied units are eligible. Funds will be awarded to states, Tribes, local governments, and nonprofits. For states and territories, HUD must prioritize applications that will give a proportionate share of funds to nonmetro areas. The pilot will expire on October 1, 2031. (ROAD Section 202) Congress would need to appropriate funds.
Opportunity Zones: HUD may give extra weight to funding applications that would be in or would benefit an OZ. (This provision does not apply to USDA or other agencies.) (ROAD Section 201) Before 21st Century ROAD to Housing was enacted, HUD offered preference points for OZs in several NOFOs.
Housing counseling review: The law requires HUD to review the performance of housing counseling agencies and individual counselors. HUD can require additional training and other remedial actions. (ROAD Section 101)
Foreclosure counseling: HUD must offer foreclosure mitigation counseling for owners who are 30 days or more delinquent on mortgages made, guaranteed, or insured by FHA, VA, USDA, or HUD Section 184 or 184A. (ROAD Section 101)
HUD voucher inspections: Units with financing from LIHTC, HOME, or USDA and an inspection within the past year will be considered to meet HUD voucher inspection requirements. The law also allows (but does not require) HUD to permit remote or video inspections for units in rural or small areas. (ROAD Section 405)

Research and Reports Related to Rural Housing
Section 502 direct loans subsidy recapture: USDA must submit a publicly available report to Congress on subsidy recapture, which refers to the requirement for homebuyers using the Section 502 direct mortgage program to repay a portion of their subsidy amounts when they sell their homes or pass away. The report to Congress must include information about the total subsidy amount provided, how much is being recaptured, and the amount of time and costs associated with recapturing those subsidies. ROAD Section 502(b) (which refers to Section 521 but is not about Section 521 Rental Assistance). The report is due by mid-January 2027.
Annual report to Congress: USDA must prepare an annual report on the rural housing programs and publish it online. (ROAD Section 502(i)) The report must be published annually.
GAO report: The Government Accountability Office must provide a report to Congress analyzing the impact of outdated RHS technology on borrower services and costs and estimating the funding and staffing needed to modernize it. (ROAD Section 502(j)) GAO’s report is due by July 11, 2027.
Processing backlog report: USDA must report to Congress on the status of its processing backlog for Section 502 and 504 loan applications. (ROAD Section 502(s)) The first report is due by October 9, 2026, and then a subsequent report is due every year.

Resources for More Information

Implementation Matrix for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

ROADmap: An Implementation Guide for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

The 21st Century ROAD to Housing Act is Now Law: What it Means for Tribal Housing, National American Indian Housing Council, July 11, 2026.

21st Century Road to Housing Act: Impacts on Low-Income Households, National Low Income Housing Coalition, July 2026.

Comparison of Selected Versions of H.R. 6644, Congressional Research Service, July 2026.

HAC News, Housing Assistance Council, every two weeks.

Policy News from Congress

HAC’s Stakeholder Comments on Rural Housing Service Programs

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HAC submitted comments to Senators Tina Smith (D-MN) and Mike Rounds (R-SD), the Chair and Ranking Member of the Housing, Transportation, and Community Development Subcommittee of the Senate Banking Committee, in response to their call for recommendations on how to improve the U.S. Department of Agriculture’s (USDA) Rural Housing Service (RHS) programs. RHS programs are a critical source of housing for our nation’s small towns and rural places. HAC hopes that Senators Smith and Rounds will use these stakeholder comments to help improve the efficiency and impact of RHS programs, especially as more multifamily properties leave the USDA portfolio.

Topline Takeaways  

  • Multifamily

    HAC strongly recommends that the Senators authorize important multifamily preservation programs and simplify the process for transferring properties to non-profit owners in order to help more properties remain in RHS programs and maintain their affordability. HAC also recommends that the Senators investigate the rental assistance programs available in rural areas and extend these to more rural renters.  

  • Single family

    HAC recommends that the Senators improve the Section 504 program which provides grants for single family home repair. Simplifying and making this program’s funds more accessible would help more families stay in their homes and preserve single family homeownership. 

  • Capacity building

    Many communities have the willingness and desire to help improve their housing opportunities but lack the technical skill or capacity to accomplish their goals. HAC recommends authorizing capacity building programs that would help communities develop the tools they need to thrive. 

  • RHS staffing and operations

    HAC recommends improving the workflow within RHS and updating the technology the RHS staff uses to increase efficiency and help RHS better serve rural communities.  

Read HAC’s Comments

HAC Comments on RHS Reforms

Updated Sept. 20: Senate Committee Votes to Keep Most Rural Housing Programs at FY19 Funding Levels

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UPDATE September 20, 2019 – When HAC first posted about the bill, its text was not yet available and the information on this page was based on a summary from the Democratic members of the House Appropriations Committee. On September 20 the bill text was posted online. There are no changes to the information originally provided.

UPDATE September 19, 2019 – The full Senate Appropriations Committee approved the subcommittee’s bill.

On September 17, 2019 the Senate Agriculture Appropriations Subcommittee approved a fiscal year 2020 spending bill that holds most USDA rural housing programs at 2019 levels, with increases for Section 521 Rental Assistance and Section 542 rural housing vouchers. This is far above the Administration’s budget proposal, but the bill approved by the House in June would increase funding for several other rural housing programs as well. If the full Senate approves the subcommittee’s bill, the differences between the House and Senate will have to be resolved by a conference committee.

USDA Rural Development Appropriations[tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY18 Approp.

FY19 Final Approp.

 FY20 Admin. Budget FY20 House Bill
(H.R. 3055)		 FY20 Senate Bill (S. 2522)

502 Single Fam. Direct
Self-Help setaside*

$1,100
5

$1,000
5

 0
0

$1,000
0

$1,000
5

502 Single Family Guar.

24,000

 24,000 24,000 24,000 24,000

504 VLI Repair Loans

28

 28 0 28 28

504 VLI Repair Grants

30

 30 0 30 30

515 Rental Hsg. Direct Lns.

40

 40 0 45 40

514 Farm Labor Hsg. Lns.

23

 27.5 0 30 27.5

516 Farm Labor Hsg. Grts.

8.4

 10 0 10 10

521 Rental Assistance

1,345

 1,331.4 1,375 1,375 1,375

523 Self-Help TA

30

 30 0 32 30

533 Hsg. Prsrv. Grants

10

 15 0 15 15

538 Rental Hsg. Guar.

230

 230 250 250 230

Rental Prsrv. Demo. (MPR)

22

 24.5 0 40 24.5

542 Rural Hsg. Vouchers

25

 27 35 35 32

Rural Cmnty. Dev’t Init.

4

 6 0 8 6

Rental Prsrv. TA

1

 1 0 0 1

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.

HAC News: May 13, 2015

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HAC News Formats. pdf

May 13, 2015
Vol. 44, No. 10

• House committee approves THUD spending bill • Senate passes budget agreement • HUD offers lead-paint grants • New version of USDA’s multifamily Preliminary Assessment Tool available • HUD and USDA determine new energy efficiency standards will apply • Guidance released to extend CDBG disaster grants from Hurricane Sandy • Dates set for Section 538 calls • FHFA announces extension of HARP • Worst Case Housing Needs 2015 Report to Congress released • Limits on GSE lending for multifamily mortgages eased • Federal rental assistance and Housing Choice voucher fact sheets released • Webinar recording on Native American housing available • HAC conference on “Serving Veterans in Rural America” set for May 20

HAC News Formats. pdf

May 13, 2015
Vol. 44, No. 10

HOUSE COMMITTEE APPROVES THUD SPENDING BILL. On May 13, the House Appropriations Committee passed the Transportation-HUD subcommittee’s FY16 appropriations bill without changes to HUD spending levels (see HAC News, 4/29/15). The committee rejected an amendment to provide $1.06 million for HOME without diverting money from the National Housing Trust Fund, offered by Rep. Barbara Lee (D-CA).

SENATE PASSES BUDGET AGREEMENT. On May 5, the Senate voted 51 to 48 to approve the House budget, which adds military spending while keeping cuts affecting social programs in place (see HAC News, 4/3/15). The budget is not binding and does not require presidential signature, but it does impose overall caps on federal spending.

HUD OFFERS LEAD-PAINT GRANTS. Local, county, state, and tribal governments can apply for the Lead Hazard Reduction Demonstration and Lead-Based Paint Hazard Control grant programs by June 23. Contact Eric Hornbuckle, HUD, 202-402-7599.

NEW VERSION OF USDA’S MULTIFAMILY PRELIMINARY ASSESSMENT TOOL AVAILABLE. Version 4.0 of the tool for Section 515 or 514 borrowers (see HAC News, 12/22/14) should be used when applying to transfer ownership or for the Multi-Family Housing Revitalization Demonstration Program (at the links, click the “Forms & Resources” tabs). Borrowers that used older PAT guidelines and submitted transactions after December 16, 2014 must use the new version. Contact an RD State Office.

HUD AND USDA DETERMINE NEW ENERGY EFFICIENCY STANDARDS WILL APPLY. New standards will be required for newly constructed homes with USDA Section 502 direct and guaranteed loans and for FHA-insured multifamily and single-family properties. For the HOME program, the standards will apply after publication of guidance by HUD. For more information contact Meghan Walsh, USDA, 202-205-9590.

GUIDANCE RELEASED TO EXTEND CDBG DISASTER GRANTS FROM HURRICANE SANDY. Expenditure extensions can be made for 24 months. For more information, contact Stanley Gimont, HUD, 202-708-3587.

DATES SET FOR SECTION 538 CALLS. To receive emails announcing dates for calls or web meetings in 2015 and 2016, contact Monica Cole at 202-720-1251. Topics will include program activities, perspectives on the current state of debt financing and its impact on the Section 538 program, enhancing the use of program financing with the transfer or preservation of Section 515 units, and the impact of LIHTC program changes on Section 538 program financing.

FHFA ANNOUNCES EXTENSION OF HARP. The Home Affordable Refinance Program will continue through the end of 2016. Launched in 2009 to provide relief to borrowers through lowering monthly payments, HARP was originally set to expire December 31, 2013.

WORST CASE HOUSING NEEDS 2015 REPORT TO CONGRESS RELEASED. HUD reports that although very low-income renters with worst case needs (those who do not receive government housing aid and paid more than half their income for rent, lived in severely inadequate conditions, or both) decreased slightly from 2011 to 2013, need remains high. Nonmetro areas experience less worst case need overall, but face other challenges including high utility costs.

LIMITS ON GSE LENDING FOR MULTIFAMILY MORTGAGES EASED. Fannie Mae and Freddie Mac can increase their financing of multifamily mortgages this year in order to avoid tighter multifamily credit and borrowing costs. Caps will remain at $30 billion each; however, multifamily loans that meet certain qualifications can be excluded. Qualifications are based on the percentage of units priced under a certain area median income, whether the property is in a high cost market, if the units target seniors, and if the property is mixed-income targeted affordable housing.

FEDERAL RENTAL ASSISTANCE AND HOUSING CHOICE VOUCHER FACT SHEETS RELEASED. The Center on Budget and Policy Priorities fact sheets provide state level data on the impacts of HUD rental assistance, the Housing Choice Voucher Program, Housing Choice Voucher utilization data, and sequestration cuts in Housing Choice Vouchers.

WEBINAR RECORDING ON NATIVE AMERICAN HOUSING AVAILABLE. On March 24, HUD hosted a panel discussion and webcast entitled “Native American Housing: Obstacles and Opportunities.” Speakers provided data and described best practices.

HAC CONFERENCE ON “SERVING VETERANS IN RURAL AMERICA” SET FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: April 29, 2015

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HAC News Formats. pdf

April 29, 2015
Vol. 44, No. 9

• House acts on HUD funding • USDA RD issues final 502 packaging rule • RD revises UL on tenant notifications for loan payoffs • HUD offers ICDBG funds to address mold • HUD has tenant protection vouchers for low-vacancy areas • Continuum of Care registration opens • VA requests comments on Veterans Choice Program • HUD changes Distressed Asset Stabilization Program • Broadband comments requested • HUD revising tribal consultation policy • HUD required to use procurement contracts for Section 8 funding • Administration adds new Promise Zones • GAO recommends changes in HOPWA funding formula • HUD releases Rental Market Dynamics 2009-2011 report • HAC blogs on ending rural veteran homelessness • Veterans and LIHTC subjects of HAC webinars • HAC conference on “Serving Veterans in Rural America” set for May 20

HAC News Formats. pdf

April 29, 2015
Vol. 44, No. 9

HOUSE ACTS ON HUD FUNDING. The House Appropriations Transportation-HUD Subcommittee on April 29 approved a bill to fund HUD and other programs in fiscal year 2016, beginning October 1. The bill would reduce appropriations for HOME from $900 million in 2015 to $767 million in 2016, but would make up the difference by channeling receipts from Fannie Mae and Freddie Mac to HOME rather than to the National Housing Trust Fund, where current law requires them to go. The bill has level funding for CDBG, Native American housing, public housing operating funds, fair housing, and housing counseling. Some other reductions and increases would also occur, as the table below indicates. A full committee mark-up is the next step in the process and will probably occur soon. The Senate committee has not yet scheduled its action on a T-HUD bill. Also not yet clear is when a final appropriations act will pass and what the impact of a required budget sequester could be. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Admin. Budget
Proposal

FY16
House Subcmte. Bill

Cmty. Devel. Fund
CDBG

3,308
2,948

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

HOME
SHOP setaside

1,000
b

1,000
b

900
b

1,060
10

767
–

Self-Help Homeownshp. (SHOP)

13.5

10

10

b

10

Tenant-Based Rental Assistance
VASH setaside

18,939.4
75

19,177.2
75

19,304
75

21,123
c

19,919
–

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,330

10,360

10,254

Public Hsg. Capital Fund

1,886

1,875

1,875

1,970

1,681

Public Hsg. Operating Fund

4,262

4,400

4,440

4,600

4,440

Choice Neighbrhd. Initiative

120

90

80

250

20

Native Amer. Hsg. Block Grant

650

650

650

660

650

Homeless Assistance Grantsd

2,033

2,105

2,135

2,480

2,185

Hsg. Opps. for Persons w/ AIDS

334

330

330

332

332

202 Hsg. for Elderly

377

385.3

436

455

414

811 Hsg. for Disabled

165

126

135

177

152

Fair Housing

70.8

66

65.3

71

65.3

Healthy Homes & Lead Haz. Cntl.

120

110

110

120

75

Housing Counseling

45

45

47

60

47

Local Housing Policy Grants

–

–

–

300

–
a. Figures shown do not include 5% sequester.
b. Recent Obama budgets have proposed making the SHOP program a setaside in HOME. Congress has rejected that proposal.
c. VASH vouchers for homeless veterans are not funded. The President’s budget proposed making VASH part of a new account of incremental rental vouchers for families, veterans, and tribal families experiencing homelessness and for victims of domestic violence.
d. Includes the Rural Housing Stability Program, which is not yet operational.

USDA RD ISSUES FINAL 502 PACKAGING RULE. Revisions to the rule proposed on August 23, 2013 (see HAC News, 8/28/13) will strengthen qualification requirements for intermediaries, require all loans to go through intermediaries unless a packaging organization gets a USDA waiver, cap fees at $1,500 initially, exempt self-help loans from packaging, and make other changes. The final rule is effective July 28. Contact Brooke Baumann, RD, 202-690-4250.

RD REVISES UL ON TENANT NOTIFICATIONS FOR LOAN PAYOFFS. An Unnumbered Letter dated April 28, 2015 supersedes one issued on January 15, 2015 (see HAC News, 2/4/15) and includes sample notifications for borrowers and tenants. Contact a USDA RD state office.

HUD OFFERS ICDBG FUNDS TO ADDRESS MOLD. Tribes and tribal organizations can apply by June 22 for Mold Remediation and Prevention grants to be used for housing units owned or operated by tribes and TDHEs or previously assisted with HUD funding. Contact Roberta Youmans, HUD, 202-402-3316.

HUD HAS TENANT PROTECTION VOUCHERS FOR LOW-VACANCY AREAS. Property owners can apply on a rolling basis for either enhanced vouchers or project-based vouchers for tenants in listed low-vacancy counties whose rents rise when a HUD-insured, HUD-held or Section 202 loan matures; a rental assistance contract expires; or HUD affordability restrictions expire. Contact HUD’s Housing Voucher Management and Operations Division, 202-708-0477.

CONTINUUM OF CARE REGISTRATION OPENS. CoC Collaborative Applicants (not project applicants) must register by May 18 in order to compete for FY15 funds. Contact a HUD CPD field office.

VA REQUESTS COMMENTS ON VETERANS CHOICE PROGRAM. Comments are due May 26 for the Veterans Choice Program interim final rule, which uses driving distance rather than straight lines to measure the distance from a veteran’s residence to the nearest VA medical facility. Contact Kristin Cunningham, VA, 202-382-2508.

HUD CHANGES DISTRESSED ASSET STABILIZATION PROGRAM. Loan servicers must now delay foreclosure for a year and evaluate borrowers for loss mitigation programs. Other changes are intended to increase HUD’s first 2015 sale is planned for June.

BROADBAND COMMENTS REQUESTED. The Rural Utilities Service and National Telecommunications and Information Administration seek input by June 10 about federal actions to promote broadband deployment, adoption, and competition, including by identifying and removing regulatory barriers. Contact Denise Scott, RUS, 202-720-1910.

HUD REVISING TRIBAL CONSULTATION POLICY. Comments are due June 8 on changes to HUD’s government-to-government policy, which intended to enhance communication and coordination between HUD and federally recognized Indian tribes, and to outline guiding principles and procedures under which all HUD employees are to operate with regard to federally recognized tribes. Contact Rodger Boyd, HUD, 202-401-7914.

HUD REQUIRED TO USE PROCUREMENT CONTRACTS FOR SECTION 8 FUNDING. On April 20 the Supreme Court denied an appeal petition, leaving standing a lower court’s ruling that HUD cannot continue to use cooperative agreements with states and PHAs to run the Project-Based Rental Assistance (voucher) program. HUD must now use the federal procurement process, and has said it will need 18-24 months to implement the decision.

ADMINISTRATION ADDS NEW PROMISE ZONES. As PZs, the Pine Ridge Indian Reservation in South Dakota and the South Carolina Low Country, along with six cities, will receive technical assistance and some funding preferences.

GAO RECOMMENDS CHANGES IN HOPWA FUNDING FORMULA. Persons with HIV: Funding Formula for Housing Assistance Could Be Better Targeted, and Performance Data Could Be Improved recommends revising the funding formula to letter reflect the number of living persons with HIV.

HUD RELEASES RENTAL MARKET DYNAMICS 2009-2011 REPORT. The report finds that while the number of afford-able units increased nationally, their percentage of the overall rental stock decreased.

HAC BLOGS ON ENDING RURAL VETERAN HOMELESSNESS. “Accounting for Our Sometimes Hidden Homeless Veterans” highlights strategies to ensure rural veterans are included in VA efforts to end veteran homelessness in 2015.

VETERANS AND LIHTC SUBJECTS OF HAC WEBINARS. “Access to Health and Homeless Services for Rural Veterans” is set for May 6. “Utilizing Low Income Housing Tax Credits: An Introduction” will be on May 13; follow the discussion online at #ruralLIHTC. Both will be at 2:00 eastern time and are free; registration is required. Contact Shonterria Charleston, 404-892-4824.

HAC CONFERENCE ON “SERVING VETERANS IN RURAL AMERICA” SET FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: April 15, 2015

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HAC News Formats. pdf

April 15, 2015
Vol. 44, No. 8

• House approves bills on QM and manufactured housing • USDA expanding Section 502 direct loan intermediary pilot • CDFI Fund offers bond guarantees, eases applications for some • RHS encourages processing Section 502 direct applications • RD’s Capital Needs Assessment guidance reissued • FHFA adopts rule prohibiting pass-through of NHTF and CMF costs • Study finds administrative fees for HUD vouchers do not cover costs • Report documents innovative financing for permanent supportive housing • GAO report on government programs’ overlap includes NMTC recommendations • HUD offers healthy housing awards • Upcoming HAC webinars cover HVAC, veterans

HAC News Formats. pdf

April 15, 2015
Vol. 44, No. 8

HOUSE APPROVES BILLS ON QM AND MANUFACTURED HOUSING. On April 14 the House passed H.R. 685, the Mortgage Choice Act of 2015, and H.R. 650, the Preserving Access to Manufactured Housing Act. Supporters say the bills would clarify provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and increase consumer options. The Obama Administration has threatened to veto both H.R. 685 and H.R. 650, saying both “would weaken key consumer protections and provisions” of Dodd-Frank.

USDA EXPANDING SECTION 502 DIRECT LOAN INTERMEDIARY PILOT. Nonprofits and public agencies can apply by May 13 to become intermediaries, which train and assist other nonprofits to package Section 502 direct loan applications. New intermediaries must work in specific states not covered by current intermediaries. For further information, contact Brooke Baumann, RD, 202-690-4250.

CDFI FUND OFFERS BOND GUARANTEES, EASES APPLICATIONS FOR SOME. Certified CDFIs or entities designated by certified CDFIs can apply by June 5 to become qualified issuers, and qualified issuers can apply by June 12 for guarantees under the CDFI Bond Guarantee Program. Contact CDFI Fund staff, 202-653-0421, option 5. Comments are due June 9 on an interim rule that would give the CDFI Fund more flexibility to approve a CDFI that is an affiliate of another CDFI for the Bond Guarantee Program only. Contact CDFI Fund staff.

RHS ENCOURAGES PROCESSING SECTION 502 DIRECT APPLICATIONS. RHS has told stakeholders, including HAC, that Administrator Tony Hernandez and USDA Under Secretary Lisa Mensah recently encouraged field staff to allocate adequate resources to process applications for Section 502 direct loans. The National Office has provided states with new tools for data analysis and management, and states are encouraged to partner with others as needed to speed loan processing and fully utilize FY 2015 allocations.

RD’S CAPITAL NEEDS ASSESSMENT GUIDANCE REISSUED. An Unnumbered Letter dated March 16, 2015 is substantially the same as a 2013 UL. It provides detail on developing a CNA, required for transactions involving USDA financed multifamily properties. Contact a USDA RD state office.

FHFA ADOPTS RULE PROHIBITING PASS-THROUGH OF NHTF AND CMF COSTS. No changes were made in the interim rule issued in December (see HAC News, 12/22/14) stating that Fannie Mae and Freddie Mac cannot pass to loan originators the costs of their National Housing Trust Fund and Capital Magnet Fund allocations.

STUDY FINDS ADMINISTRATIVE FEES FOR HUD VOUCHERS DO NOT COVER COSTS. Conducted byAbt Associates for HUD, the research included public housing authorities of all sizes in urban, rural, and suburban places. A draft report, Housing Choice Voucher Program Administrative Fee Study, says in 2013 the average cost of administering a voucher was $70.03 per month and the average fee from HUD was $51.64. Costs in the smallest PHAs (fewer than 50 vouchers) were 91% higher than in the largest PHAs (200 to 249 vouchers), even though rural labor costs were lower. Only 52% of the costs in those smallest PHAs were covered by fees. The report recommends a new formula for calculating fees.

REPORT DOCUMENTS INNOVATIVE FINANCING FOR PERMANENT SUPPORTIVE HOUSING. Creating New Integrated Permanent Supportive Housing Opportunities for ELI Households: A Vision for the Future of the National Housing Trust Fund, released by the Technical Assistance Collaborative and the National Low Income Housing Coalition, highlights state innovations in financing for permanent supportive housing for extremely low-income (30% of area median) households, consistent with recommendations in NLIHC’s report, Aligning Federal Low Income Housing Programs with Housing Need.

GAO REPORT ON GOVERNMENT PROGRAMS’ OVERLAP INCLUDES NMTC RECOMMENDATIONS. The Government Accountability Office’s 2015 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits(GAO-15-404SP) makes no new recommendations on housing programs. It suggests the CDFI Fund issue further guidance on how other government programs can be combined with New Markets Tax Credits; ensure adequate controls to limit the risks of unnecessary duplication and above-market rates of return; and ensure that more complete and accurate data are collected.

HUD OFFERS HEALTHY HOUSING AWARDS. Applications are due April 30 for awards in three categories: public housing/multifamily supported housing, public policy, and cross-program coordination.

UPCOMING HAC WEBINARS COVER HVAC, VETERANS. “A Practitioner’s Guide to Energy Star 3.0: HVAC (Part A)” will be on April 22 at 2:00 eastern (registration available soon) and “Access to Health and Homeless Services for Rural Veterans” on May 6 at 2:00 eastern. Both are free; registration is required. Contact HAC staff, 404-892-4824.

HAC News: April 3, 2015

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HAC News Formats. pdf

April 3, 2015
Vol. 44, No. 7

• April is National Fair Housing Month • House and Senate approve nonbinding budget resolutions • NAHASDA reauthorization passes House • USDA offers farmworker housing loans and grants • Housing counseling grants available • HUD requests comment on VAWA rule changes • Broadband demonstration in HUD housing considered • USDA approval for restructuring senior loans explained • Ways to speed agency processing of Section 502 guaranteed loans suggested • HUD sets requirements for rental assistance transfers • Update for Section 3 regulations proposed • Rural housing tenant data for 2014 now available • Homelessness has decreased, change varies widely among states, report says • CFPB updates homebuying toolkit • HAC sets Energy Star webinar for April 8

HAC News Formats. pdf

April 3, 2015
Vol. 44, No. 7

APRIL IS NATIONAL FAIR HOUSING MONTH. HUD issued a press release describing a new media campaign.

HOUSE AND SENATE APPROVE NONBINDING BUDGET RESOLUTIONS. The House passed H.Con.Res.27 on March 25 and the Senate approved S.Con.Res. 11 on March 27. Both houses would retain sequester spending caps for FY16 and make deeper cuts beginning in FY17. Differences between the two mean there may not be agreement on a joint resolution, which would not have the force of law but would guide development of appropriations bills for FY16.

NAHASDA REAUTHORIZATION PASSES HOUSE. The House passed H.R. 360, the Native American Housing Assistance and Self Determination Reauthorization Act, on March 23. The Senate Indian Affairs Committee held a hearing March 18 on its bill, S. 710.

USDA OFFERS FARMWORKER HOUSING LOANS AND GRANTS. Pre-applications for construction or purchase and sub-stantial rehab of off-farm housing are due June 23. Rental Assistance and operating assistance are available. Projects serving high poverty census tracts will receive additional points. Contact an RD state office for an application package.

HOUSING COUNSELING GRANTS AVAILABLE. HUD-approved housing counseling agencies can apply by May 7. Contact HUD staff.

HUD REQUESTS COMMENT ON VAWA RULE CHANGES. A proposed rule implementing the 2013 Violence Against Women Reauthorization Act would increase protections for survivors of domestic and dating violence, stalking, and sexual assault who live in rental housing assisted by HUD. Comments are due June 1. HAC’s website provides a brief summary of the proposal. Separate contacts for HUD programs are listed in the proposed rule. HUD’s proposal covers USDA-funded rental units that have HUD Section 8 assistance, but not other USDA rentals. USDA has implemented the 2013 VAWA through Administrative Notices 4747 (February 10, 2014) and 4778 (January 5, 2015).

BROADBAND DEMONSTRATION IN HUD HOUSING CONSIDERED. HUD requests comments by May 1 on a proposed demonstration aimed at narrowing the digital divide for students in HUD-assisted housing. It wants to partner with local governments, business, and nonprofits “to accelerate broadband adoption and use in HUD-assisted homes.” HUD intends to conduct the initial demonstration in about 20 HUD-assisted communities across the country, both urban and rural, and hopes to expand it nationwide eventually. Contact Camille E. Acevedo, HUD, 202-402-5132.

USDA APPROVAL FOR RESTRUCTURING SENIOR LOANS EXPLAINED. An Unnumbered Letter dated February 27, 2015 is intended to clarify the process for obtaining official RD prior approval and permission to restructure a third-party loan to which a Section 515 loan is subordinate. Contact an RD state office.

WAYS TO SPEED AGENCY PROCESSING OF SECTION 502 GUARANTEED LOANS SUGGESTED. An Unnumbered Letter dated March 13, 2015 lists “tips and best practices for increasing operational efficiencies and to eliminate unnecessary unproductive processes.” Contact the Rural Housing Service’s National Office, 202-720-1452.

HUD SETS REQUIREMENTS FOR RENTAL ASSISTANCE TRANSFERS. A notice describes the conditions for HUD approval of requests to transfer project-based rental assistance, debt held or insured by HUD, and use restrictions from one or more multifamily housing project to another or others. Contact Nancie-Ann Bodell, HUD, 202-708-2495.

UPDATE FOR SECTION 3 REGULATIONS PROPOSED. HUD suggests strengthening its oversight of Section 3, which requires giving jobs and other economic opportunities generated by HUD assistance to low- and very low-income persons to the extent possible.Comments are due May 26. Contact Staci Gilliam, HUD, 202-402-3468.

RURAL HOUSING TENANT DATA FOR 2014 NOW AVAILABLE. USDA RD’s annual issuance provides figures at the national and state levels for the agency’s multifamily portfolio as a whole and separately for Section 515, Section 514/516, and Rental Assistance. There were 1,645 fewer units in 2014 than in 2013. The average income for Section 515 tenants is now $12,022 and for Rental Assistance recipients $10,258. Elderly and disabled households remain a majority in Section 515 units, at 61.65%, and the proportion of households with disabilities increased.

HOMELESSNESS HAS DECREASED, CHANGE VARIES WIDELY AMONG STATES, REPORT SAYS. The State of Homelessness in America 2015, by the National Alliance to End Homelessness, reports data for states and for subpopulations.

CFPB UPDATES HOMEBUYING TOOLKIT. The Consumer Financial Protection Bureau has revised its information booklet, “Your Home Loan Toolkit: A Step-by-Step Guide.” Contact Julie Vore, CFPB, 202-435-7700.

HAC SETS ENERGY STAR WEBINAR FOR APRIL 8. Register online for HAC’s upcoming webinar, “A Practitioner’s Guide to Energy Star 3.0,” to be held on April 8 at 2 pm Eastern time. Contact HAC staff, 404-892-4824.

HAC News: March 18, 2015

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HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

• Members of Congress question budget’s self-help funding, minimum rents, and more • Castro includes rural in budget testimony • House and Senate Republicans release FY16 budgets • VA expands eligibility for SSVF NOFA •HUD requests input on HOPWA for abuse victims • USDA StrikeForce Initiative adds counties in Oklahoma and Puerto Rico • Gap between supply of and demand for affordable rental units continues to grow • Housing costs increasing for employed renters • HAC releases conference report • HAC sets “Serving Veterans in Rural America” conference for May 20

HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

MEMBERS OF CONGRESS QUESTION BUDGET’S SELF-HELP FUNDING, MINIMUM RENTS, AND MORE. Appropriations Committee Chair Hal Rogers (R-KY) called the proposed reduction in funding for Section 523 self-help housing “troublesome” at a March 18 House Agriculture Appropriations Subcommittee hearing on the Administration’s FY16 budget request. Housing Administrator Tony Hernandez said carryover from FY15 will help fund self-help contracts, and that RD’s effort to improve underwriting and automation will lead to reduced wait times for loan approvals. Subcommittee Chair Robert Aderholt (R-AL) questioned funding decreases that have “been rejected [by Congress] many times in the past,” and also asked about the proposed $50 minimum rent. Hernandez said about 36,000 households would be eligible for hardship exemptions, where a rent of $25 would likely be required, and noted USDA is asking to access HHS income verification databases to confirm program eligibility. Rep. Andy Harris (R-MD) inquired about RD’s reevaluation of how “rural in character” is defined to determine housing program eligibility. Hernandez replied the requirement is currently suspended and should be reinstated by September 2015. Subcommittee Ranking Member Rep. Sam Farr (D-CA) pointed out this was the only hearing addressing rural poverty.

CASTRO INCLUDES RURAL IN BUDGET TESTIMONY. On March 11, HUD Secretary Julián Castro testified on HUD’s FY16 budget request before the Senate Transportation-HUD Appropriations Subcommittee. His written testimony, like the testimony prepared for the House Subcommittee on February 25, includes a section on rural America, focusing on Native American programs, colonias, and partnerships with USDA.

HOUSE AND SENATE REPUBLICANS RELEASE FY16 BUDGETS. Neither document includes specific spending levels for individual housing programs. The Senate Republicans’ budget proposal does not discuss housing. The House version says it will reform housing programs, without details except for positive mention of HUD’s Moving to Work program. It would also privatize Fannie Mae and Freddie Mac.

VA EXPANDS ELIGIBILITY FOR SSVF NOFA. The Department of Veterans Affairs has made current Supportive Services for Veteran Families grantees with three-year, non-renewable grants eligible to apply under its February 3 NOFA (see HAC News, 2/4/15). The deadline is April 10. Contact SSVF staff, 877-737-0111.

HUD REQUESTS INPUT ON HOPWA FOR ABUSE VICTIMS. Comments are due April 13 on a demonstration that will award grants to states, local governments, and nonprofits to provide temporary housing to low-income victims of abuse or assault living with HIV/AIDS. Grantees must coordinate with local domestic violence and sexual assault service providers for client outreach and supportive services. Contact Amy Palilonis, HUD, 202-402-5916.

USDA STRIKEFORCE INITIATIVE ADDS COUNTIES IN OKLAHOMA AND PUERTO RICO. StrikeForce targets assistance to rural areas with chronic poverty. Parts of 21 states and the entire island of Puerto Rico are now included.

COMMENTS REQUESTED ON REDUCING USDA REGULATORY BURDENS. Comments are due May 18 on ways to modify regulations to streamline reporting and increase flexibility. Contact Michael Poe, USDA, 202-720-3257.

GAP BETWEEN SUPPLY OF AND DEMAND FOR AFFORDABLE RENTAL UNITS CONTINUES TO GROW. Affordable Housing is Nowhere to be Found for Millions, published by the National Low Income Housing Coalition,highlights the gaps at the national and state levels. Nationwide, only 31 affordable and available rental units exist for every 100 extremely low-income renter households. NLIHC says that, without government intervention, this gap will continue increasing.

HOUSING COSTS INCREASING FOR EMPLOYED RENTERS. Housing Landscape 2015, by the National Housing Conference’s Center for Housing Policy, reports housing affordability has improved slightly for low- and moderate-income working households, but costs continue to increase for working renters. Minority-headed households – except for American Indians and Native Alaskans – have a notably higher housing cost burden than white-headed households.

HAC RELEASES CONFERENCE REPORT. Events from the 2014 HAC Rural Housing Conference are reviewed briefly in the final report, which includes links to videos of each plenary session as well as materials from select workshops. [tdborder][/tdborder]

HAC SETS “SERVING VETERANS IN RURAL AMERICA” CONFERENCE FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. Confirmed speakers include Sen. Johnny Isakson (R-GA), other government officials, and representatives of several local rural housing organizations. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: March 4, 2015

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HAC News Formats. pdf

March 4, 2015
Vol. 44, No. 5

• First hearing for FY16 housing funding held • USDA offers rural vouchers • Section 502 guarantee rule changes offered • RD sets national square footage for modest housing • Supportive Services for Veteran Families regulations completed • HUD issues guidance on service to LGBT and transgender individuals • State CDBG program guide updated • HUD compares Housing Trust Fund and HOME • Section 8 guidance covers Davis-Bacon’s applicability to existing housing • Study shows how energy efficiency in rental housing helps affordability • “How Housing Matters” website launched • Interactive map shows racial/ethnic diversity by age for counties

HAC News Formats. pdf

March 4, 2015
Vol. 44, No. 5

FIRST HEARING FOR FY16 HOUSING FUNDING HELD. On February 25, HUD Secretary Julián Castro testified before the House Appropriations Committee’s Transportation-HUD Subcommittee about the Administration’s FY16 budget request (see HAC News, 2/4/15). Rep. David Valadao (R-CA) asked how much of HUD’s funding goes to rural places and how HUD can serve rural America. Castro responded with the proportions of CDBG and HOME dollars used in rural areas. Rep. Henry Cuellar (D-TX) asked about HUD activities in the colonias. Castro described the budget request to increase the CDBG setaside for colonias to 15% from the current 10%. The subcommittee will hold another hearing on HUD funding for housing and one for community development. The House Agriculture Appropriations Subcommittee has scheduled a March 18 hearing on USDA Rural Development, including the rural housing programs.

USDA OFFERS RURAL VOUCHERS. Section 542vouchers are for tenants of RD-financed Section 515 properties where the RD loan has been prepaid or foreclosed on after September 30, 2005. A notice will be published in the March 9 Federal Register. Contact an RD office or Stephanie B.M. White, RD, 202-720-1615.

SECTION 502 GUARANTEE RULE CHANGES OFFERED. USDA RD proposes to amend its regulations for the single-family guaranteed loan program on the subjects of lender indemnification, principal reduction, refinancing, and qualified mortgage requirements. Comments are due May 4. Contact Lilian Lipton, USDA, 202-260-8012.

RD SETS NATIONAL SQUARE FOOTAGE FOR MODEST HOUSING. In recent years, regional guidelines have been used for square footage, which is one factor in determining what homes are “modest” and eligible for the Section 502 direct and 504 programs. An Unnumbered Letter dated March 3, 2015 sets a nationwide guideline at 1,800 square feet. State Directors can approve exceptions. Contact Chris Ketner, RD, 202-690-1530.

SUPPORTIVE SERVICES FOR VETERAN FAMILIES REGULATIONS COMPLETED. The VA issued final regulations for the program, which makes grants to entities that provide supportive services to very low-income veterans and families who are at risk for becoming homeless or who have recently become homeless. Contact John Kuhn, 877-737-0111 (toll-free).

HUD ISSUES GUIDANCE ON SERVICE TO LGBT AND TRANSGENDER INDIVIDUALS. Notice H 2015-01 reminds stakeholders that regulations prohibiting discrimination based on sexual orientation, gender identify, or marital status apply to housing financed or insured by HUD. To ask questions about this notice, contact the FHA Resource Center, 800-CALLFHA (800-225-5342). Notice CPD-15-02 addresses appropriate placement for transgender persons in single-sex emergency shelters and other facilities, telling providers they should generally place individuals in shelters serving the gender with which they identify. Submit questions on this notice online.

STATE CDBG PROGRAM GUIDE UPDATED. Guide to National Objectives and Eligible Activities for State CDBG Programs, published by HUD, describes and provides examples of eligible activities and details the process for selecting activities that properly address a national objective.

HUD COMPARES HOUSING TRUST FUND AND HOME. A brief table highlights the key differences in the programs.

SECTION 8 GUIDANCE COVERS DAVIS-BACON’S APPLICABILITY TO EXISTING HOUSING. In the March 9 Federal Register HUD will publish information supplementing its rules on applying the Davis-Bacon Act’s wage requirements to existing housing involved in the Section 8 project-based voucher program. Contact Becky Primeaux, HUD, 202-708-2815.

STUDY SHOWS HOW ENERGY EFFICIENCY IN RENTAL HOUSING HELPS AFFORDABILITY. A report on research conducted for Housing Virginia by Virginia Tech’s Center for Housing Research states that residents of energy-efficient Low Income Housing Tax Credit developments, both urban and rural, saved an average of $54 a month on electricity bills, and those apartments outperformed new standard construction by over 40% with respect to energy consumption.

“HOW HOUSING MATTERS” WEBSITE LAUNCHED. The site, funded by the John D. and Catherine T. MacArthur Foundation and created by the Urban Land Institute Terwilliger Center for Housing, is intended to be “the go-to place for the most rigorous research and practical information on how housing can contribute to better educational opportunities and outcomes for children; stronger economic foundations for families and communities; healthier people and neighborhoods.”

INTERACTIVE MAP SHOWS RACIAL/ETHNIC DIVERSITY BY AGE FOR COUNTIES. A Brookings Institution online map illustrates the racial composition of different age groups for each county and metropolitan area. Brookings notes that youth are considerably more diverse than elders. Detailed data are also provided.

HAC News: February 18, 2015

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HAC News Formats. pdf

February 18, 2015
Vol. 44, No. 4

• February is National African American History Month • USDA offers Household Water Well System grants • HUD-VASH vouchers will expand to Native American communities • Regulators request input on CRA and other banking rules • HUD announces Annual Adjustment Factors • USDA RD revamps website • Worst case housing needs drop • Changes in housing and other policies could reduce child poverty by 60% nationwide • HUD reports on ways housing matters to children • Affordable housing can improve educational outcomes • Sequestration and its impacts described • Economic recovery is bypassing millions of Americans, CFED reports • Regulatory costs may drive small bank mergers

HAC News Formats. pdf

February 18, 2015
Vol. 44, No. 4

FEBRUARY IS NATIONAL AFRICAN AMERICAN HISTORY MONTH. President Obama’s proclamation is online.

USDA OFFERS HOUSEHOLD WATER WELL SYSTEM GRANTS. Nonprofits can apply by April 13 for grants to establish lending programs enabling homeowners to borrow up to $11,000 to construct or repair household water wells for existing homes. Contact Joyce M. Taylor, RUS, 202-720-9589.

HUD-VASH VOUCHERS WILL EXPAND TO NATIVE AMERICAN COMMUNITIES. HUD has announced it will dedicate $4 million to make vouchers for about 650 homeless veterans available in Native communities for the first time. Comments on program design are due February 25 to tribalhudvashcomments@hud.gov. Contact HUD’s Office of Native American Programs.

REGULATORS REQUEST INPUT ON CRA AND OTHER BANKING RULES. Comments are due May 14. The Federal Reserve, FDIC, and Comptroller of the Currency pose questions about ways to reduce regulatory burden, particularly on community banks and small lenders.

HUD ANNOUNCES ANNUAL ADJUSTMENT FACTORS. The FY15 AAFs will be used to adjust Section 8 rents on contract anniversaries. Contact Becky Primeaux, HUD, 202-708-1380.

USDA RD REVAMPS WEBSITE. The new site, https://www.rd.usda.gov, moves regulations, handbooks, and other guidance documents to https://www.rd.usda.gov/publications/regulations-guidelines.

WORST CASE HOUSING NEEDS DROP. From 2011 to 2013 the number of worst case needs – very low-income renter households who do not receive government housing assistance and who pay more than one-half of their income for rent, live in severely inadequate conditions, or both – fell from 8.5 million to 7.7 million. Increases in renter incomes and limited increases in rents are probably responsible, according to the executive summary of HUD’s annual worst case needs report. In 2013 there were still 1.6 very low-income households with worst case needs for every very low-income household that received rental assistance, HUD says. The full report will be released this spring.

CHANGES IN HOUSING AND OTHER POLICIES COULD REDUCE CHILD POVERTY BY 60% NATIONWIDE. Child poverty in nonmetro places could be cut by 68.2%, according to Reducing Child Poverty in the U.S., prepared by the Urban Institute for the Children’s Defense Fund. The report examines the poverty reduction impact of nine policies, ranging from expanding the Earned Income Tax Credit to increasing SNAP benefits. Expanding the availability of housing vouchers would reduce child poverty by 21.3% in metro areas and 16.4% in nonmetro places. The report, a summary of recommendations, and a blog post are available online.

HUD REPORTS ON WAYS HOUSING MATTERS TO CHILDREN. An issue of HUD’s Evidence Matters newsletter focuses on how housing matters for children’s physical and emotional health, achievement in school, and economic opportunity. A HAC Rural Research Note summarizes some of the research’s implications for rural children.

AFFORDABLE HOUSING CAN IMPROVE EDUCATIONAL OUTCOMES. An updated literature review by the National Housing Conference’s Center for Housing Policy presents key findings from research showing that stable, affordable housing may foster educational success by supporting family financial stability, reducing mobility, providing safe, nurturing living environments, and providing a platform for community development.

SEQUESTRATION AND ITS IMPACTS DESCRIBED. The government spending reductions required by the 2011 Budget Control Act are now achieved through spending caps, not across-the-board cuts as in FY13. A new paper by the Center on Budget and Policy Priorities describes the mechanisms established in the law, how policymakers subsequently modified them, and the resulting effects on non-defense appropriations. It notes that under the BCA “in inflation-adjusted terms, the 2016 cap would be 17 percent below the 2010 level.”

ECONOMIC RECOVERY IS BYPASSING MILLIONS OF AMERICANS, CFED REPORTS. Excluded from the Financial Mainstream presents the main findings from CFED’s 2015 Assets and Opportunity Scorecard, which evaluates 135 different policy and outcome measures in five categories including housing. Infographics and interactive maps are also available online.

REGULATORY COSTS MAY DRIVE SMALL BANK MERGERS. The State and Fate of Community Banking, a Harvard Kennedy School working paper, reports that community banks play a major role in rural areas and in agriculture, small business, and residential mortgage lending. Since 2010 the total share of bank assets held by community banks, especially small ones, has fallen significantly, and the report concludes the increased costs of regulation under the Dodd-Frank Act are a likely cause.